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Simple RSI & MACD Trading

  • #21
  • Jun 29, 2010 8:35pm Jun 29, 2010 8:35pm
Howdy All,

When I trade this session, I like to have at least of the currencies from this session - JPY, NZD, or AUD.

pipsacker
  • #22
  • Jun 29, 2010 9:30pm Jun 29, 2010 9:30pm
the way RSI has been used by most is flawed.

RSI as it is, is an indicator that shows the relative strength of price over the number of bars it was traded upon.

it is by no means to be used as a buy and sell signal once levels are reached. traders should be using them to guage price momentum instead.

i'll use an hourly chart for dissection. here im using RSI 24 to see the daily strength of prices. as it is the bias has been very strong towards the sell side as the momentum suggests, RSI is consistently traded below 50 but shorts would most likely to put caution on their trades due to the weakening downward force. RSI has given a higher reading on lower prices, suggesting that sellers may be covering much of thier positions for profits. bottom pickers may want to scalp against the trend while trend traders may likely wait for better prices or stronger downward momentum to negotiate a re-entry.

so as we can see, the supposed use of this indicator is to view momentum, trades could not be decided upon the levels the indicator reaches, that could only be decided by money management.
Attached Image (click to enlarge)
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  • #23
  • Jun 29, 2010 9:58pm Jun 29, 2010 9:58pm
Quoting jest1081
the way RSI has been used by most is flawed.

RSI as it is, is an indicator that shows the relative strength of price over the number of bars it was traded upon.

it is by no means to be used as a buy and sell signal once levels are reached. traders should be using them to guage price momentum instead.

the supposed use of this indicator is to view momentum, trades could not be decided upon the levels the indicator reaches, that could only be decided by money management.
Well said!
福 子 Victor V
  • #24
  • Jun 30, 2010 5:23am Jun 30, 2010 5:23am
eu and ej this am were in a long trend from a "dot" a few hours back

to enter the 1hr trend, used 15m chart to initiate a long when a "dot" appeared on 15m chart agreeing with 1hour trend....found two winners working the trades as scalps and took some profit

(and then watched trend continue...smile)
  • #25
  • Jun 30, 2010 8:26am Jun 30, 2010 8:26am
would like to hear bout ur journey with this strat

how did u decide the dot settings??

how many trades do u take in a 24 hr session?

what times do u trade?

what percentage of winners verses losers?

when or how do u decide a dot is failing and exit?

what is ur most successful currency to trade?

hmmmmmmmmmmmmm i`ll think of many more questions...lol

but most of all, let me say, many thxs for sharing!!!
  • #26
  • Jun 30, 2010 2:27pm Jun 30, 2010 2:27pm
Quoting jest1081
the way RSI has been used by most is flawed.

RSI as it is, is an indicator that shows the relative strength of price over the number of bars it was traded upon.

it is by no means to be used as a buy and sell signal once levels are reached. traders should be using them to guage price momentum instead.

i'll use an hourly chart for dissection. here im using RSI 24 to see the daily strength of prices. as it is the bias has been very strong towards the sell side as the momentum suggests, RSI is consistently traded below 50 but shorts would most...
Jest,
Have you ever traded reversals on RSI or Divergences? This is different then trading at RSI levels and creates signals from RSI. I use this system similar to what Andrew Cardwell uses (student of Welles Wilder the creator of RSI) but without moving averages as they are lagging indicators. Instead I trade off the a mean reversion of the most significant single moving average of the last two months. I seldom trade divergences unless they line up with the reversal data.
Paul
  • #27
  • Jun 30, 2010 6:15pm Jun 30, 2010 6:15pm
the MACD_dot on the 4hr looks like a very powerful signal...

Cam have u considered the 4hr??
  • #28
  • Jul 1, 2010 8:01am Jul 1, 2010 8:01am
Quoting farmhand
eu and ej this am were in a long trend from a "dot" a few hours back

to enter the 1hr trend, used 15m chart to initiate a long when a "dot" appeared on 15m chart agreeing with 1hour trend....found two winners working the trades as scalps and took some profit

(and then watched trend continue...smile)
You are on the right track!

福 子 Victor V
  • #29
  • Jul 1, 2010 8:12am Jul 1, 2010 8:12am
farmhand,

how did u decide the dot settings??

It is from "Natuseko Protrader 4H Strategy"

how many trades do u take in a 24 hr session?

No limits. As many as i can catch.

what times do u trade?

Ideally 24 hours but impossible. That's why with an EA, it would be good.

what percentage of winners verses losers?

More than 70%

when or how do u decide a dot is failing and exit?

Entry is mechanical. Exit is really an art. If you depend on indicators for exit, i'll say you will not make it. Learn what is Price Action (PA) and you will make it. If using an EA, a feature of Jumping Stop Loss of 25 - 30 pips will save you lots of pips.

what is ur most successful currency to trade?

EURUSD, EURJPY, GBPUSD, GBPJPY

福 子 Victor V
  • #30
  • Jul 1, 2010 8:17am Jul 1, 2010 8:17am
i like very much this strategy, keep in mind that with good conditions is very powerful, but when the market doesn't have this conditions don't use IT!
  • #31
  • Jul 1, 2010 8:19am Jul 1, 2010 8:19am
Quoting farmhand
the MACD_dot on the 4hr looks like a very powerful signal...

Cam have u considered the 4hr??
Higher time frame works better.

福 子 Victor V
  • #32
  • Jul 1, 2010 5:41pm Jul 1, 2010 5:41pm
You may find the attached useful.

Attached File(s)
File Type: pdf Ultimate RSI Indicator.pdf   141 KB | 5,743 downloads
File Type: ex4 UltimateRSIIndicator.ex4   11 KB | 900 downloads
福 子 Victor V
  • #33
  • Jul 2, 2010 12:47am Jul 2, 2010 12:47am
To get more signals in H1, use 30 and 70 level of RSI (7).

福 子 Victor V
  • #34
  • Jul 2, 2010 6:36am Jul 2, 2010 6:36am
Cam thx for the replies!
doing a serious study of the 4hr dot

i`m est time frame, the 4am candle at first produced no reversal dots

somewhere in the 4am candle, a dot appeared with the uj, so took a very late entry and trade is working

wondering what kind of stop loss for a 4h candle dot??

next few weeks my total concentration will be the 4hr candle and i will post all the discoveries and results

studying the previous 4hr dots i see positive results

http://cdn.forexfactory.com/images/misc/progress.gif

  • #35
  • Jul 2, 2010 10:46am Jul 2, 2010 10:46am
Quoting farmhand
Cam thx for the replies!
doing a serious study of the 4hr dot

i`m est time frame, the 4am candle at first produced no reversal dots

somewhere in the 4am candle, a dot appeared with the uj, so took a very late entry and trade is working

wondering what kind of stop loss for a 4h candle dot??

next few weeks my total concentration will be the 4hr candle and i will post all the discoveries and results

studying the previous 4hr dots i see positive results

http://cdn.forexfactory.com/images/misc/progress.gif

...
A good SL on H4 would be 5 pips + spread from the previous swing high/low or H4 bar, adjusting to your MM rules.

Looking forward to your successful finding on the H4 timeframe. I suggest testing on EURUSD and EURJPY.

Have a great weekend ahead.

Victor

福 子 Victor V
  • #36
  • Oct 14, 2011 3:17am Oct 14, 2011 3:17am
Hi,

I have noticed it could be very profitable trading using MACD_Dot indicator in a 5 mi timeframe (EUR/USD).
However I would love to have an alarm sound when the red or blue dot appears. Do you think it would be easy to make it?
  • #37
  • Last Post: Aug 5, 2016 11:33am Aug 5, 2016 11:33am
great strategy............but why didn't continue... please continue ..
Success is a Journey Not a Destination....... kind regards ramzam
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